Yes — Freddie Mac CHOICERenovation® underwriting hinges on an after-improved appraisal that supports purchase or rate/term refinance plus rehab against the home you will create. Clear contractor bids and a realistic scope keep that valuation fundable under LPA Accept.
Four inputs that drive after-improved value on a Freddie Mac CHOICERenovation® file.
01
Current property condition, comps, and any safety or marketability issues that affect today’s value.
02
Line-item contractor bids and plans that describe exactly what will change before final 1004D.
03
Projected market value once renovations finish — the primary basis for Freddie Mac CHOICERenovation® loan sizing and LTV.
04
Whether local comps support the finished product at the price your loan and repair caps assume.
Freddie Mac CHOICERenovation® lets you borrow against the finished home — not only the fixer as it sits today. That means purchase price (or refinance balance) plus eligible rehab can fit Freddie Mac LTV limits when the appraiser agrees the completed work will support the number.
Vague allowances, missing permits, or luxury items without market support are the fastest way to a low appraisal. Match every financed dollar to a bid the appraiser can value — and stay inside the 75% repair cost cap (or manufactured-home limits).
Ryan and Steve package your bids before the appraisal order so the scope, comps story, LPA Accept path, and loan amount stay aligned from offer to closing.
Renovation costs cannot exceed 75% of the lesser of purchase price plus renovation costs, or as-completed appraised value.
On rate/term refinance, renovation costs cannot exceed 75% of as-completed appraised value.
Lesser of $50,000 or 50% of as-completed appraised value — appraisal support still required.
Related guides for draws, scope, timeline, and how Freddie Mac CHOICERenovation® compares to HomeStyle.
Escrow draws after the appraisal supports the plan.
Scopes that must match the appraisal plan.
Finish work within the 15-month window.
How Freddie Mac and Fannie Mae renovation value differently.
Purchase-plus-rehab sized on after-improved value.
Full program overview and guide directory.
Yes in almost every purchase and rate/term refinance Freddie Mac CHOICERenovation® file. The lender needs a licensed appraisal that supports both the as-is condition and — critically — the after-improved value used to size your loan, LTV limits, and renovation escrow.
The appraiser values the home as if the approved renovations are complete, using your contractor bids and scope. Loan-to-value is calculated against that projected value (subject to program caps), not only today’s as-is price.
Often a final 1004D inspection confirms the work matches the plan. A full second appraisal is not always required, but the lender may order one if scope changed or value needs reconfirmation.
You may need to reduce rehab scope, increase down payment, renegotiate purchase price, or bring cash to cover the gap. Ryan and Steve review bid packages before the appraisal so surprises are less likely.
Ryan & Steve will align contractor scope, repair caps, and after-improved value before the appraisal order so LPA Accept has a clear path.
Freddie Mac CHOICERenovation® is a registered trademark of Freddie Mac. All loans are subject to credit and property approval. Program guidelines, LTV limits, and pricing are subject to change without notice and may not be available in all areas. This website is not affiliated with or endorsed by Freddie Mac, Fannie Mae, HUD, or any government agency. Information is for educational purposes only and is not a commitment to lend.